Broker: CGS International
Date of Report: June 10, 2025

Singapore Market Update: Bumitama Agri Ltd Technical Buy, US-China Trade, and Singapore Banking Sector Trends

Market Recap: US-China Trade Talks and Rare-Earths Diplomacy

The global spotlight remains fixed on US-China trade negotiations, with both superpowers set to resume critical discussions in London. The talks aim to soothe tensions around rare-earth minerals and advanced technology, following a call between Donald Trump and Xi Jinping. The urgency is clear: both countries had previously agreed in Geneva to temporarily reduce tariffs that soared above 100%. The US administration expects a positive outcome, especially after China approved some rare-earth export applications, though it withheld specifics.

Key US officials, including Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, will meet China’s Vice Premier He Lifeng. With Lutnick overseeing curbs on advanced technology sales, there is speculation that the US may rethink some restrictions impacting China’s tech sector and long-term growth. The rare-earth standoff has affected American industries reliant on these minerals, while China has protested US limitations on AI chips, chip-design software, plane engines, and visas for a significant number of Chinese students.

Singapore Banking Sector: Loan and Deposit Growth Trends

• Loan Growth: Singapore’s banking system saw loan growth moderate to +3.4% year-on-year in April 2025. Nonetheless, robust loan demand from ASEAN markets is expected to support sustained growth through the rest of the fiscal year.
• Deposit Growth: Deposits remain buoyant, and the Current Account Savings Account (CASA) ratio is projected to improve as interest rates decline, reducing funding costs for banks in Q2 2025.
• Sector Outlook: The report maintains a Neutral stance on Singapore banks, with DBS named as the top sector pick.

Bumitama Agri Ltd: Technical Buy Call Signals Strong Recovery

Last Price: S\$0.79 Investment Thesis: Bumitama Agri Ltd, a leading Indonesian palm oil producer, is spotlighted as a technical buy, marking the end of its recent corrective wave. The company cultivates and harvests oil palm, processes fresh fruit bunches (FFB) into crude palm oil (CPO) and palm kernel (PK), and sells these products domestically.

Key Technical Levels and Trade Setup

Technical Analysis Highlights

• Bumitama rebounded robustly at the 123.6% expansion level of the corrective wave A to B, signaling a probable end to the corrective structure.
• Price action demonstrates a renewed bullish trend after a previous stop-out at S\$0.74 earlier in March 2025, followed by a strong rebound.
• The Ichimoku indicator shows two out of three bullish crossovers, strengthening the technical buy case.
• The Stochastic Oscillator is nearing an oversold bullish crossover, suggesting upward momentum may continue.
• The 23-period Rate of Change (ROC) has rebounded and remains positive, supporting the bullish outlook.
• The Directional Movement Index confirms underlying bullish strength.
• Volume expansion continues in a healthy, supportive fashion.

Bumitama Agri Ltd: Company Overview

Bumitama Agri Ltd is a key Indonesian palm oil player, focused on cultivating oil palm plantations, processing FFB from its own and third-party sources, and marketing CPO and PK within Indonesia. Its vertically integrated operations enhance efficiency and market reach.

Legal and Regulatory Disclaimers

The report is intended for professional, institutional, and sophisticated investors only, with distribution conditioned by local regulations across numerous jurisdictions. It is not an offer or solicitation to buy or sell securities and does not account for the specific investment objectives or financial situations of individual recipients. Investors are strongly urged to perform independent due diligence and consult professional advisors before making investment decisions.

CGS International and its affiliates may hold positions or engage in transactions in the securities mentioned and may offer investment banking or advisory services to these companies. The report’s authors certify the independence and accuracy of their views, subject to standard compensation practices unrelated to specific recommendations.

Stock Ratings and Recommendation Framework

• Add: Expected total return exceeds 10% over the next 12 months.
• Hold: Expected total return between 0% and +10% over the next 12 months.
• Reduce: Expected total return below 0% over the next 12 months.

Sector and country ratings follow a similar logic, advising overweight, neutral, or underweight stances relative to benchmarks based on market cap weighting and expected performance.

As of March 31, 2025, 551 companies were under coverage for stock ratings and investment banking clients.

Conclusion: Navigating Volatility with Technical and Fundamental Insights

The current landscape is shaped by ongoing US-China trade developments and evolving monetary conditions in Singapore and ASEAN. Bumitama Agri Ltd emerges as a technical buy, with strong indicators pointing to the end of a correction and the resumption of a bullish trend. Meanwhile, Singapore banks are poised for steady loan and deposit growth, with a focus on cost efficiency as interest rates ease. Investors are encouraged to monitor macro conditions and company-specific signals as they position portfolios for the rest of 2025.